VEDANTA LTD 2017-18 Annual Report Analysis

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VEDANTA LTD 2017-18 Annual Report Analysis
Tue, 14 Aug

VEDANTA LTD has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

VEDANTA LTD Income Statement Analysis

  • Operating income during the year rose 27.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 18.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 27.4% in FY18 as against 29.5% in FY17.
  • Depreciation charges and finance costs decreased by 0.1% YoY and 1.2% YoY, respectively.
  • Other income declined by 22.0% YoY.
  • Net profit for the year grew by 21.0% YoY.
  • Net profit margins during the year declined from 14.7% in FY17 to 14.3% in FY18.

VEDANTA LTD Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 722,250 918,660 27.2%
Other income Rs m 45,806 35,740 -22.0%
Total Revenues Rs m 768,056 954,400 24.3%
Gross profit Rs m 213,324 251,640 18.0%
Depreciation Rs m 62,915 62,830 -0.1%
Interest Rs m 58,550 57,830 -1.2%
Profit before tax Rs m 137,664 166,720 21.1%
Tax Rs m 23,330 58,770 151.9%
Profit after tax Rs m 113,190 136,920 21.0%
Gross profit margin % 29.5 27.4
Effective tax rate % 16.9 35.3
Net profit margin % 14.7 14.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



VEDANTA LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 672 billion as compared to Rs 827 billion in FY17, thereby witnessing an decrease of -18.7%.
  • Long-term debt down at Rs 268 billion as compared to Rs 303 billion during FY17, a fall of 11.5%.
  • Current assets fell 28% and stood at Rs 551 billion, while fixed assets rose 8% and stood at Rs 1,123 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 1,848 billion as against Rs 1,990 billion during FY17, thereby witnessing a fall of 7%.

VEDANTA LTD Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 605,001 635,078 5.0
 
Current Liabilities Rs m 826,753 672,470 -18.7
Long-term Debt Rs m 302,551 267,890 -11.5
Total Liabilities Rs m 1,990,296 1,847,980 -7.2
 
Current assets Rs m 767,961 551,140 -28.2
Fixed Assets Rs m 1,043,116 1,123,340 7.7
Total Assets Rs m 1,990,296 1,847,980 -7.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



VEDANTA LTD Cash Flow Statement Analysis

  • VEDANTA LTD's cash flow from operating activities (CFO) during FY18 stood at Rs 180 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 154 billion, an improvement of 467.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -399 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -64 billion from the Rs 83 billion net cash flows seen during FY17.

VEDANTA LTD Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 180,830 180,370 -0.3%
Cash Flow from Investing Activities Rs m 27,110 153,960 467.9%
Cash Flow from Financing Activities Rs m -124,250 -399,260 -
Net Cash Flow Rs m 83,391 -64,090 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for VEDANTA LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 46.2, an improvement from the EPS of Rs 38.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 215.2, stands at 4.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 243.6 309.8
TTM Earnings per share Rs 38.2 46.2
Diluted earnings per share Rs 38.2 46.2
Price to Cash Flow x 3.6 3.2
TTM P/E ratio x 4.6 4.6
Price / Book Value ratio x 0.9 1.3
Market Cap Rs m 637,920 637,853
Dividends per share (Unadj.) Rs 19.5 21.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for VEDANTA LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.8x during FY18, from 0.9x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 3.9x during FY18, from 3.4x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 21.6% during FY18, from 18.7% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 28.1% during FY18, from 21.5% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 10.5% during FY18, from 8.6% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 0.9 0.8
Debtors’ Days Days 11 16
Interest coverage x 3.4 3.9
Debt to equity ratio x 0.5 0.4
Return on assets % 8.6 10.5
Return on equity % 18.7 21.6
Return on capital employed % 21.5 28.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how VEDANTA LTD has performed over the last 5 years, please visit here.

VEDANTA LTD Share Price Performance

Over the last one year, VEDANTA LTD share price has moved up from Rs 289.2 to Rs 215.2, registering a loss of Rs 74.1 or around 25.6%.

Overall, the S&P BSE SENSEX is up 20.4% over the year.

(To know more, check out historical annual results for VEDANTA LTD and quarterly results for VEDANTA LTD)

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VEDANTA LTD Announces Quarterly Results (2QFY20); Net Profit Up 43.7% (Quarterly Result Update)

Nov 15, 2019 | Updated on Nov 15, 2019

For the quarter ended September 2019, VEDANTA LTD has posted a net profit of Rs 27 bn (up 43.7% YoY). Sales on the other hand came in at Rs 220 bn (down 3.3% YoY). Read on for a complete analysis of VEDANTA LTD's quarterly results.

VEDANTA LTD Announces Quarterly Results (1QFY20); Net Profit Down 13.5% (Quarterly Result Update)

Jul 29, 2019 | Updated on Jul 29, 2019

For the quarter ended June 2019, VEDANTA LTD has posted a net profit of Rs 19 bn (down 13.5% YoY). Sales on the other hand came in at Rs 214 bn (down 3.7% YoY). Read on for a complete analysis of VEDANTA LTD's quarterly results.

VEDANTA LTD 2018-19 Annual Report Analysis (Annual Result Update)

Jun 27, 2019 | Updated on Jun 27, 2019

Here's an analysis of the annual report of VEDANTA LTD for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of VEDANTA LTD. Also includes updates on the valuation of VEDANTA LTD.

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